New Issue: Energy XXI Gulf Coast prices upsized $1.45 billion 11% notes due 2020 to yield 12%

By Paul A. Harris

Portland, Ore., March 5 – Energy XXI Gulf Coast, Inc. priced an upsized $1.45 billion issue of 11% five-year senior secured second-lien notes (B2/B+) at 96.313 to yield 12% on Thursday, according to a syndicate source.

The deal was upsized from $1.25 billion.

The coupon and yield came on top of talk.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Wells Fargo Securities LLC, Imperial Capital, UBS Investment Bank, Citigroup Global Markets Inc., RBS Securities Inc. and Jefferies LLC were the joint bookrunners.

The Houston-based independent exploration and production company plans to use the proceeds to repay its revolver and for general corporate purposes.

Issuer:	Energy XXI Gulf Coast, Inc.
Amount:	$1.45 billion, increased from $1.25 billion
Maturity:	March 15, 2020
Securities:	Senior secured second-lien notes
Bookrunners:	Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Wells Fargo Securities LLC, Imperial Capital, UBS Investment Bank, Citigroup Global Markets Inc., RBS Securities Inc., Jefferies LLC
Coupon:	11%
Price:	96.313
Yield:	12%
Spread:	1,040 bps
First call:	Sept. 15, 2017 at 108.25 (call protection increased to 2.5 years from two years)
Trade date:	March 5
Settlement date:	March 12
Ratings:	Moody's: B2
	Standard & Poor's: B+
Distribution:	Rule 144A for life
Price talk:	11% coupon to yield 12%
Marketing:	Roadshow

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